Proactiveinvestors United Kingdom Altus Strategies

RNS press release - Holding(s) in Company

Wed, 21 Mar 2012 17:15:00 +0000

RNS press release - Half Yearly Report available on website

Mon, 05 Mar 2012 11:35:00 +0000

Altus Resource Capital NAV down at interim stage

Mon, 06 Feb 2012 10:29:00 +0000

Closed-ended investment company Altus Resource Capital (LON:ARCL) reported a sharp drop in its net asset value (NAV) at the end of the first half to December 2011.

In its results statement, ARC said its focus on the junior resources sector and spread of exposure to non-gold equities meant that it could not remain immune from the worst of the market turmoil and sustained a loss of 7.4 per cent to a NAV of £71 million or £1.79 per share as at December 31, compared with £76 million or 192.8 pence per share on June 30 2011.

“This loss in value was not as dramatic as in much of the junior resource sector due primarily to the company's weighting towards quality gold equities and significant cash position,” it said.

ARC is managed by Altus Capital Ltd which in turn is controlled by Altus Strategies. ARC listed on the Specialist Fund Market of the London Stock Exchange on June 30 2009 and the Channel Island Stock Exchange on December 22 2009 under ‘ARC’.

ARC invests in companies engaged in the exploration, development and/or mining of metals and minerals with a focus on companies that operate in the gold sector. Portfolio companies will be predominantly, but not exclusively, listed or quoted on either UK markets or other recognised stock exchanges including the Canadian and Australian markets.

They will typically be capitalised at less than £500 million at the time of investment.

ARC said today that, despite the relative strength of gold, which rose 3.9 per cent over the first half, major gold mining indices lost value with the FTSE Gold Mines Index and the S&P/ TSX Gold Index falling 6.4 per cent and 5.1 per cent, respectively. Industrial commodities and miners performed less well with the copper price and the FTSE 350 Mining Index losing 19.4 per cent and 25.1 per cent respectively.

ARC said the causes of the market volatility and weakness during 2011 have not gone away. A solution to the Eurozone sovereign debt crisis is yet to materialise and there is little clarity on the strength and sustainability of the global economic recovery. It expects markets to remain volatile over the next six to twelve months.

China's industrialisation and urbanisation continues apace albeit now at more sustainable levels following rigorous fiscal tightening to curb over-exuberant growth and inflation.

Gold demand from other emerging economies continues to grow both from central bank buying and retail investors.

The investment manager still expects further quantitative easing measures to be deployed by Western economies to alleviate their sovereign debt burdens, creating additional money supply which is inflationary and another driver of the gold price.

RNS press release - Half Yearly Report

Mon, 06 Feb 2012 07:00:00 +0000

RNS press release - Holding(s) in Company

Mon, 09 Jan 2012 17:45:00 +0000

RNS press release - Holding(s) in Company

Wed, 28 Dec 2011 16:00:00 +0000

Altus Resource Capital positioned to "take advantage" of a strong gold price

Mon, 21 Nov 2011 10:20:00 +0000

Altus Resource Capital Ltd (LON:ARCL), which invests in mining equities, said its portfolio is positioned to take advantage of a strong gold price.

The firm released an interim management statement covering July 1 to November 18, in which it highlighted that the net asset value of the firm increased to £77.1 million in the period - a 0.7 per cent rise.

Moreover, this represents a 104.5 per cent rise since the firm's launch on June 30, 2009.

Altus Resource Capital (ARC) is managed by Altus Capital Ltd which in turn is controlled by Altus Strategies. It listed on the Specialist Fund Market of the London Stock Exchange on June 30, 2009 and the Channel Island Stock Exchange on December 22, 2009 under 'ARC'.

It invests in exploration and development firms focusing on those that operate in the gold sector.

As at the end of October this year, the firm's portfolio comprised 26 holdings in junior mining and exploration companies, exposure to gold via exchange traded funds (ETFs) and an investment in Altus Global Gold Ltd - an open-ended vehicle seeded by the company and focused on the mid-tier gold sector.

The firm said the period had been dominated by the Eurozone sovereign debt crisis and continued uncertainty of the global economic recovery.

"The gold price, which has also seen a dramatic increase in its volatility, has benefitted from the global economic uncertainty given its safe haven characteristics," it added.

It said the performance of its net asset value had been volatile, and Altus Capital Ltd had sought to increase the firm's exposure to quality gold equities taking the gold proportion of assets under management from 51 per cent to 66 per cent over the period.

Looking ahead, the firm said its portfolio was "positioned to take advantage of a strong gold price and a closing of the disconnect that has opened up between gold and gold equities".

"Further, the strong cash position will be maintained to allow the manager to take advantage of opportunities that these volatile markets may present," it said.